Canada suspended trade negotiations with the United States after last-minute talks failed to produce an agreement, escalating tensions between the two countries as Washington moves ahead with fresh 50% tariffs on about $20 billion of Canadian goods.
Prime Minister Mark Carney said the US had made eleventh-hour changes to the proposed deal that Canada considered "unfair" and uneconomic, adding that Ottawa would respond to US tariffs "dollar for dollar." The breakdown comes days after Washington temporarily delayed the new duties to allow negotiators more time to reach an agreement.
Statement by Prime Minister Carney on Canada-US trade negotiations
Over the past 18 months, Canada's new government has focused on building our strength at home, diversifying our partnerships abroad, and striking a fair deal with the United States.
Our objectives in our trade negotiations have been to:
- Preserve tariff-free access to the U.S. for the vast majority of Canadian business;
- Provide greater stability to our trade relationship;
- Significantly reduce U.S. tariffs on our key strategic industries, so that Canadian businesses in these sectors would have the best access of any in the world;
- Protect our small and medium-sized businesses – the lifeblood of our economy – including by removing the imminent threat of new tariffs; and
- Maintain our flexibility, independence, and sovereignty so we can keep building the Canada we want.
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The US intends to impose a 50% tariff on about $28 billion of Canadian goods from midnight, Carney said. Canada will respond with matching tariffs “dollar for dollar” to protect workers and businesses.
The government will also announce additional support measures in the coming days, adding to nearly $25 billion of assistance provided over the past 18 months.
Carney said Canada had entered the negotiations recognising that its economic relationship with the US had changed and that Washington was reshaping trade ties, including with close allies.
He said Ottawa would continue focusing on strengthening the domestic economy and diversifying export markets. Canada is advancing nearly $500 billion in major infrastructure projects and aims to double preferential market access by year-end, while expanding exports to non-US markets and attracting foreign investment across a broader range of partners.
ALSO READ: US Set To Cut Tariffs On Canada Metals, Autos In Trade Deal
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